Cities with international reputations for luxury shopping are witnessing strong demand from retailers and will continue to benefit from high rents, according to new research from property adviser CBRE.
Cities with international reputations for luxury shopping are witnessing strong demand from retailers and will continue to benefit from high rents, according to new research from property adviser CBRE.
London ranked third in the world’s top five most expensive retail markets and is expected to experience continued upward pressure in its prime locations due to the scarcity of available prime stock. As with other major tourist markets, the UK capital continues to attract luxury and international high fashion retailers.
'Cities with international reputations for luxury shopping are especially in demand. Given the limited supply of prime space throughout these locations, prime rents will remain high in the foreseeable future,' said Ray Torto, global chief economist at CBRE.
The top two most expensive retail markets - Hong Kong and New York - recorded significant rises in prime retail rents during the third quarter of 2012, while the next tier - Tokyo, Sydney and London - held steady.
Global retailer activity remains polarised with prime, high street space in the best markets experiencing the greatest retailer demand. Despite the economic downturn, the CBRE Global Retail Rent Index increased by 2% in the third quarter and 7.3% year-on-year.
'While consumer confidence on a global scale remains restrained, the global retail sector continues to gradually recover. International and domestic retailers maintained cautious, yet forward-looking expansion strategies as they identified opportunities for long-term growth. Given the current economic landscape, retailers are understandably seeking highly trafficked prime locations,' Torto added.
